Biden administration takes on JetBlue as its fight against industry consolidation goes to court

  • 📰 CTVNews
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 99%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The Biden administration's fight against consolidation in the airline industry is being tested Tuesday as lawyers for JetBlue Airways and the Justice Department squared off in court.

The administration is suing to block JetBlue's proposed $3.8 billion acquisition of Spirit Airlines. The trial in federal district court in Boston could reshape the market for low-cost airlines -- Spirit is by far the nation's biggest budget carrier, and it will disappear if JetBlue wins the case.

JetBlue isn't exactly the sort of behemoth that comes to mind when imagining a defendant in an antitrust case. It is the sixth-largest U.S. airline by revenue, and it is trying to buy the seventh-biggest. If it swallows Spirit, JetBlue will leapfrog Alaska Airlines but still control less than 10% of the U.S. air-travel market. It would remain far smaller than American, United, Delta or Southwest.

"Consumers are better off with an independent Spirit, not a JetBlue intent on removing seats from planes and charging higher fares," government lawyers argued in their pre-trial brief. They say the harm will fall hardest on cost-conscious consumers. JetBlue tried that strategy: It offered to divest gates and landing and takeoff rights and gates in Boston, the New York City area and Fort Lauderdale, Florida, to Frontier and Allegiant. The government scoffed at the offer, saying those discount carriers have pledged to fly the same routes that Spirit flies now.

JetBlue forecast an adjusted loss of 35 cents to 55 cents per share and lower revenue over the last three months of the year. Analysts expected a loss of 15 cents per share, according to a FactSet survey.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Biden administration takes on JetBlue as its fight against industry consolidation goes to courtThe Biden administration’s fight against consolidation in the airline industry will be tested Tuesday with lawyers for JetBlue Airways and the Justice...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

U.S. Department of Justice Seeks to Block JetBlue's Acquisition of Spirit AirlinesThe U.S. Department of Justice is going to trial to prevent JetBlue Airways from acquiring Spirit Airlines in a $3.8 billion deal. The trial aims to maintain competition among low-cost airlines and ensure affordable air travel for U.S. consumers.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

US seeks to block JetBlue, Spirit Airlines merger at trialThe U.S. Department of Justice heads to trial on Tuesday to urge a federal judge to block JetBlue Airways' planned $3.8 billion acquisition of ultra-low-cost...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

US seeks to block JetBlue, Spirit Airlines merger at trialExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »